Noting slower growth, Fed keeps interest rates on hold

WASHINGTON - The Federal Reserve has downgraded its assessment of the economy after a winter that saw growth slow to a trickle. It kept its key interest rate unchanged.

On a day when the government said the economy barely grew in the January-March quarter, the Fed gave no indication it is any closer to raising a key rate from its six-year low near zero. The Fed notes in a statement that growth slowed, business investment softened and exports declined.

It repeated previous language that it needs to be "reasonably confident" that low inflation will move back to its 2 percent target.

The Fed statement's followed a policy meeting and came hours after the government estimated that the economy slowed to a 0.2 percent annual growth rate in the first quarter of 2015.